Tuesday, February 28, 2017

UK
workers' wages fell an average of 1% a year after 2008 financial
crisis putting it well behind global average. The
findings are further evidence that real incomes are set to be
squeezed this year.

The
UK was almost at the very bottom of a national ranking of wage
growth compiled
by the Trades
Union Congress.
A study based on data from the International Labour Organisation,
shows that average wage growth across 112 countries was 2.3 per cent
a year between 2008 and 2015, compared to a median increase of 1.6
per cent. Of all the countries examined by the TUC, only a handful
ranked worse than the UK in terms of wage growth, putting it in 103rd
place.

The
Bank of England reported that employers plan to scale down pay awards
this year, despite the expected
jump in inflation due to the plunging pound.
According to the agents’ latest survey, average pay growth of 2.7
per cent in 2016 is expected to slow sharply to 2.2 per cent in 2017.

Consumer
price inflation currently stands at 1.6 per cent and is expected to
reach 2.7 per cent by the Bank of England by the end of 2017, largely
due to the 12 per cent slump in sterling since last June's Brexit
vote.